Corporate Governance

Topics: Law, Labour relations, Organizational studies and human resource management Pages: 6 (1248 words) Published: April 6, 2013

Elisha Masakadza (Syndicate Leader)
Frank Munyanduki
Kingsley Zimbudzana
M Jeremiah
M Chivasa
Mbairo Dhliwayo
Simba Mwaingeni


* International Org (Eastern Parts) had fired employees 12mnth ago.

* Case has been in the Labour Courts for 6 months

* The Org lost the case because of failure to follow the proper labour procedures.

* NEC gave 2 options
a.Re-instate and backdate salaries 12 mnths since dismissal b.Pay substantial damages to avoid reinstating.

* Org had an option to pay within 2 weeks file an appeal.

* One of the female workers may sue for sexual harassment by senior manager.

* Workers are dejected, demoralized and putting no extra effort.

* Conflict rampant with strained relationship between management and workers.

* The Organization has reduced business and wants to downsize.

Identification of the main issues raised in the case.
As HR consultant
a.What steps would you take to address the situation (there are 4 situations) * The dismissed workers case.
* Sexual harassment.
* Dejected workers and strained relations with mgt.
* Retrenchment and downsizing.
* Recommendations
Solution Outline
Theories underlying the issues raised.
* Steps to be followed by org when dismissing employees.
a.Labour law
b.Company Policy. Co. Procedures, Code of conduct
c.Company Rules

* Consideration of the 2 options

* The Option for appeal

* Steps to addressing sexual harassment and rumour

* Steps and consideration for redundancy and downsizing.

* Steps to address dejected workers.

* Steps to address conflict and strained relationship between the management and the workers. Solutions in Detail
Applying Theories under lying raised issues.

1.a.Labour Act (Chapter 28:01) Section 12 provides for that the employer shall inform employee in writing on engagement such as employment code and breaches thereof. b.Lab our Act (Chapter 28:01) Sect 12B provides for conditions for unfair dismissal.

c.Company Policy, which is written and signed by employer. (i)Should spell out precisely step to be taken in case of discipline, retrenchment and dismissals.
(ii)The co. policy must be ascended to buy the Labour ministry.
(iii)Policy should define employment relationships and psychological contract. (iv)Policy to outline what attitudes and behavior is expected in order to create conducive atmosphere for maximizing production and contribution.

d.Company Code of conduct must include:
(i)Notice for disciplinary interview
(ii)Notice of suspension
(iii)Written warning/Final warnings
(iv)Dismissal notice with/without previous warnings.
(v)Notice of appeal hearing/result of appeal
(vi)Redress and grievances.

e.Company Rules must indicate.
(i)Minor offences- number of verbal/written warnings and validity
(ii)Moderate offences- number of verbal/written warnings and validity
(iii)Serious offences- number of verbal/written warnings and validity
(iv)Very serious offences- number of verbal/written warnings and validity

2.Consideration of options
(i)Reinstating the employees and backdate them 12 months.
(a.)Gives flexibility on paying them
(b)May improve the morale of the workers
(c)Gives org to make its policy and procedures more robust and compliant with Labour Laws. (ii)Make an appeal within 2 wks following all proper labour procedures. This will save on money. RECOMMENDATIONS

1.The Org must have a comprehensive Policy, procedures and Rules that are endorsed by Labour Ministry, International Labour Lands. 2.Adhere to the dismissal and labour procedures.
3.Reinstate the employees and negotiate gradual back date, or negotiate exit package with the employees. 4.Appeal against award, because the company’s current...
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